My Opinion: This loop hole should reheat the Vancouver Markets displacing more Canadian middle class families! Canadian Markets are to dependant on Chinese investors !
The B.C. finance ministry has reviewed a developer’s rent-to-own scheme that promises to help homebuyers “avoid paying the 15-per-cent foreign buyers’ tax” and found it doesn’t violate any law.
The Vancouver Rent to Own program from Apex Western Homes offers potential buyers a lease agreement on a home, with the option to buy within five years. That gives foreign buyers time to secure permanent residency or a work permit in Canada.
A video on the program’s website explains a bit further: “Did you know that you can buy a house in North Vancouver, one of the most desirable cities in the world, with only five per cent down? And if you’re a foreign buyer, you can avoid paying the 15 per cent foreign buyers’ tax?
In an emailed statement Wednesday, the finance ministry said: “We have reviewed the structure of the rent-to-own model offered by this company.” A ministry spokesperson confirmed the government found no issues with the program.
However, the ministry reached out to CBC News after this story was published to clarify that rent-to-own models in general cannot be used to avoid paying taxes, and stressed the government would crack down on schemes of this nature.
The ministry’s evaluation left Vancouver real estate lawyer Richard Bell scratching his head.
“The word ‘avoid’ sounds like tax avoidance to me,” Bell told CBC News, referring to the wording used by Apex.
“If the purpose of that structure is to avoid the tax, why would that not fall within the definition of tax avoidance?”